Blockchain Integration Overview

Why Add Blockchains in SCM

● Can you think of some recent scandals related to poor
supply chain management in the food and drug
industries?

● Huge reputational damage to these companies along

with millions of dollars in damages and recalls

● It took several weeks to locate the source of

contamination leading to millions of dollars worth of
product being wasted in both cases

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 Characteristics of a good supply chain
● End-to-end visibility - low visibility makes it difficult to react quickly to customer needs, or to evolve
and scale

● Flexibility - lower stream entities can change at any moment so supply chains should be able to
adapt to the changes quickly

● Shared trust - trust is crucial for breaking down siloed operations

● Control - only authorized parties should be able to access the logistics information

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 Properties of Blockchains

● Immutability - data stored on the ledger is virtually impossible to tamper

● Transparent - blockchains allow anyone with access rights to scrutinize the data

● Auditable - every transaction in a blockchain can be traced to the genesis block

● Fast settlement - blockchain transactions don’t have to wait 3-5 days for settlement as the peer
network settles transactions 24x7

● Low Cost - a lot of the overhead of maintaining banks physically and on the cloud are removed

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 Internet of Things
● IoT refers to the concept of extending Internet connectivity beyond PCs and smartphones, and into
things like refrigerators and sensors.

● The IoT network consists of the hardware, software and protocols that enable the flow of data
between the entities of the network.

● Blockchains combined with low powered IoT trackers and sensors can help track shipments with
information like GPS data, temperature, humidity, lights, sounds, any deviation from the determined
path, etc.

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 Internet of Things
● With blockchains, RFID chips, and arduinos, IoT can be used to track every batch of shipments
uniquely to provide end-to-end visibility

● For instance, when the batch leaves the warehouse, the arduino at the gates automatically detects
the RFID chip of the shipment and updates the network.

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 Internet of Things
● IoT needs an integration layer to manage the sensors and network entities so that data from
different sources can be aggregated and then integrated with data from external sources to make
informed decisions.

● Using the data from the integration layer, the network can determine the right course of action using
machine learning

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 Value Chain

Blockchains and IoT can be combined to create networks which connect all the different hierarchies of a
supply chain for integrated decision making.

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 SCM Using Blockchains and IoT
Instead of relying on fragmented SCM using existing tech, blockchains and IoT devices can help create
adaptive and integrated systems that allow for:
● Continuous flow of information from the manufacturer to the end user

● Permissions would allow for the relevant information to be shared with the authorized entities.

● IoT access layer would enable physical flow to be linked with information flows.

● Auditability and transparency inherent in blockchains would help ensure compliance across the flow

● Better information sharing among all of the stakeholders who all have their own information systems

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 THANK YOU!
Any questions?
You can mail us at
hello@blockchain-council.org

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